The US eased an economic embargo against Libya this evening, allowing purchases of Libyan oil and resumption of most trade to reward Tripoli for giving up its weapons of mass destruction, the White House said.
A statement from White House spokesman Mr Scott McClellan said the move allows the resumption of most commercial activities, financial transactions and investments, and that US companies "will be able to buy or invest in Libyan oil and products."
The decision was made because "Libya has taken significant steps eliminating weapons of mass destruction programs and longer range missiles, and has reiterated its pledge to halt all support for terrorism," the statement said.
Export controls on items with military uses will be maintained. Direct air service between the United States and Libya is not yet authorized, nor is the release of frozen Libyan government assets.
A dialogue on trade will be opened and the US will drop its objection to Libyan efforts to join the World Trade Organization, the statement said.
In addition, it said, the State Department will establish a US liaison office in Tripoli pending congressional notification.
Libyan students will be eligible to study in the US, subject to admission and visa requirements, and a US education delegation will travel to Libya on April 23 to begin consultations on cooperation on education.